A lathe machine cost P300,000 with a salvage value of P15,000 is expected to last for 285000 hours in a period of 5 years. In the first year of service it was used for 8000 hours. Compute the book value of the machine at the end of the first year.

Q: The original cost for a distillation tower is $24,000 and the useful life of the tower is estimated…

A: Original cost for distillation tower = $24000 Scrap value = $4000 Estimated life = 8 years Annual…

Q: A machine costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end…

A: Depreciation refers to decrease or reduction in the value of the asset of the business and it is due…

Q: An old machine may be repaired at a cost of P 9,000 or it may be replaced by a modern machine of the…

A: The repair cost of the old Machine = P9,000 Salvage Value of Old Machine (Present) = P13,000 Salvage…

Q: A machine costs P1,500,000. It has a salvage value of P600,000 at the end of its economic life.…

A: Let the economic life = n years Machine cost (F) = P 1500000 Salvage value (S) = P 600000 Book value…

Q: value aft

A: Service Output Method also known as Working Hours Method. The formula : Depreciation per hour as, =…

Q: A company uses a computer for its employees to record their entry and exit digitally, the equipment…

A: Equipment cost = $ 32000 Scrap value = $ 7500 Life = 10 Years

Q: A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The…

A: Depreciation is the decrease in the value of fixed tangible asset due to usage, obsolence or passage…

Q: A mixer was purchased for $33,000 that has an estimated salvage value of $5000 and an expected life…

A: It is given that Initial investment P = $ 33000 Salvage value S = $5000 Time n- 3 yrs Interest i =…

Q: Four years ago, an ore-crushing unit was installed at a mine which cost P81,000. Annual operating…

A: Capital Budgeting are the long term decisions an entity needs to take for the maximum benefits from…

Q: A machine costing P1,500,000.00 has an estimated economic life of 7 years. If the salvage value is…

A: The depreciation on fixed assets can be computed using various methods as straight line method,…

Q: A bottle-capping machine costs $100,000, has an estimated life of 10 years, and has a scrap value of…

A: a)  Annual Rate of depreciation = cost of machine - salvage value / cost of machine

Q: A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000…

A:

Q: A new engine was installed by a textile plant at a cost of P388,000 and projected to have a useful…

A: First cost (F) = P 388000 n = 12 years Salvage value (S) = P 37000 r = 14% compounded semiannually =…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

Q: An equipment has a first cost of 500,000 PHP and the cost of installation is 30,000 PHP.  At the end…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: A high-precision programmable router for shaping furniture components is purchased by Henredon for…

A: Under declining balance method, the depreciation is charged on the book value of the assets.

Q: A printing machine initially costs ₱139,000. It can be sold for ₱15,000 at the end of its 11-year…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: The question is based on the concept of Depreciation Accounting.

Q: A surface mount PCB placement/soldering line is to be installed for $1,000,000. It will have a…

A: Given: Surface mount PCB Placement value $1000,000 Salvage value $90,000   Under MARCS GDS Table,…

Q: at is the amount of depreciation for the second full year, during which the machine was used 5,000…

A:

Q: A machine has a first cost of Php 13,000.,an estimate life of 15 years, and an estimated salvage…

A: SLM is straight line method of depreciation in which same depreciation is charged every year of cost…

Q: A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its…

A: Formula: Depreciation in the first year = Depreciation per hour x Number of hours used

Q: The cost of the printing equipment is P500,000 and the cost of handling and installation is P30,000.…

A: The salvage value of the equipment is residual value. It can be calculated by using the depreciation…

Q: Four years ago, an ore-crushing unit was installed at a mine which cost P81,000. Annual operating…

A: Computation of Annual cost: ●Old unit: Depreciation=[P26,000 - (81,000*0.12)]/[(1+i)n - 1)/ i]…

Q: A machine costs RO 40,000 with a salvage value of RO 20,000. The expected life of the machine is…

A: Given: Cost Value = RO 40,000 Salvage value = RO 20,000 So,  Depreciation per hour = Cost value -…

Q: A machine with a purchase value of (150,000) dollars and the useful life of the machine is 7 years.…

A: Deprecation is that amount which is charge on assets every year after put to use due to wear and…

Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…

A: Present value of cash outflows = Cash outflows/(1+r)n  r is interest rate and n is time period of…

Q: Bulldozer cost P12 Million and the cost of installation labor, taxes and miscellaneous expenses is…

A: P 1 Million = P 1000000 P 12 Million = P 12000000 The Cost Of Bulldozer = P 12000000 + P500000 = P…

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: Equipment cost = P 250,000 Book value at the end of period = P 30,000 Depreciable value =…

Q: A laser surgical tool has a cost basis of $200,000 and a five-year depreciable life. The estimated…

A: Straight-line Depreciation: A straight-line basis is a method of calculating depreciation and…

Q: y a textile plant at a cost of P353,000 and projected to have a useful life of 14 years. At the end…

A: The given problem can be solved using PMT function in excel. PMT function computes equal uniform…

Q: A certain machine has book value of P120,000 after 5 years and P80,000 after 7 years. The book value…

A: A business required fixed assets for generating income. The assets are depreciated to account for…

Q: An equipment was bought at a cost of P 200,000 with an estimated life of 20 years. It had an income…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its…

A: To find out the book value at the end of a term, the opening book value is reduced by the…

Q: A machine costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end…

A: Depreciation rate = 1Estimated useful life×100 = 115 Years ×100 = 6.67% Current book value = Cost -…

Q: A diesel-powered generator with a cost of $60,000 is expected to have a useful operating life of…

A: Introduction Deprecation may be defined as that type of operating expenses which occurs due to…

Q: The initial cost of an evaporative crystallizer including its installation is P930,000. The approve…

A:

Q: A machine’s first cost is $60,000 with salvage values over the next 5 years of are $50K, $40K, $32K,…

A: The cost of machinery is the cost incurred in acquiring the machine. The term salvage value can be…

Q: determine the total depreciation

A: Any fixed asset purchased has a fixed life throughout which it has to be used. Over the course of…

Q: An equipment costs P400,000 and has a life of 30,000 hours. At the end of which its salvage value is…

A: Depreciation is the expense that is incurred due to the usage of machinery and other assets during…

Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…

A: Depreciation Expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its…

A: In this question we will use units of production method of depreciation .  Salvage value = 550,000…

Q: Machine “A” has a starting cost of $ 50,000 with an estimated period of 12 years and a salvage value…

A:

Q: A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000.  The…

A: Total number of copies in all 4 years = Sum of copies in all years = 1800 + 2200 + 3000 + 4000…

Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A  machine is purchased for $6500.  It is expected to last 8 years and have a residual value of…

A: The computation as follows: Hence, the annual straight-line depreciation is $725.

Q: An injection molding system has a first cost of $200,000 and an annual operating cost of $85,000 in…

A: The question is based on the calculation of economic service life and annual worth of a machine.…

Q: A factory has decided to purchase some new équipment for P650, 000. The equipment will be kept for…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: A concrete and rock crusher for demolition work has been purchased for $65,000, and it has an…

A: Depreciation:   Depreciation is an accounting method which is used for allocating the cost of a…

Q: A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.